CSWC vs. GAIN, PNNT, SCM, PSEC, GBDC, NMFC, PFLT, TPVG, TSLX, and VBTX
Should you be buying Capital Southwest stock or one of its competitors? The main competitors of Capital Southwest include Gladstone Investment (GAIN), PennantPark Investment (PNNT), Stellus Capital Investment (SCM), Prospect Capital (PSEC), Golub Capital BDC (GBDC), New Mountain Finance (NMFC), PennantPark Floating Rate Capital (PFLT), TriplePoint Venture Growth BDC (TPVG), Sixth Street Specialty Lending (TSLX), and Veritex (VBTX). These companies are all part of the "finance" sector.
Gladstone Investment (NASDAQ:GAIN) and Capital Southwest (NASDAQ:CSWC) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, dividends, media sentiment, institutional ownership, community ranking and risk.
Capital Southwest has a consensus target price of $25.50, suggesting a potential upside of 2.91%. Given Gladstone Investment's higher possible upside, analysts plainly believe Capital Southwest is more favorable than Gladstone Investment.
Gladstone Investment has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500. Comparatively, Capital Southwest has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500.
Gladstone Investment has higher earnings, but lower revenue than Capital Southwest. Gladstone Investment is trading at a lower price-to-earnings ratio than Capital Southwest, indicating that it is currently the more affordable of the two stocks.
Gladstone Investment has a net margin of 80.68% compared to Gladstone Investment's net margin of 52.16%. Gladstone Investment's return on equity of 15.82% beat Capital Southwest's return on equity.
Gladstone Investment received 127 more outperform votes than Capital Southwest when rated by MarketBeat users. However, 62.18% of users gave Capital Southwest an outperform vote while only 61.68% of users gave Gladstone Investment an outperform vote.
Gladstone Investment pays an annual dividend of $0.96 per share and has a dividend yield of 6.9%. Capital Southwest pays an annual dividend of $2.28 per share and has a dividend yield of 9.2%. Gladstone Investment pays out 48.2% of its earnings in the form of a dividend. Capital Southwest pays out 97.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Capital Southwest has increased its dividend for 7 consecutive years. Capital Southwest is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
In the previous week, Gladstone Investment had 5 more articles in the media than Capital Southwest. MarketBeat recorded 5 mentions for Gladstone Investment and 0 mentions for Capital Southwest. Gladstone Investment's average media sentiment score of 1.90 beat Capital Southwest's score of 0.68 indicating that Capital Southwest is being referred to more favorably in the news media.
11.9% of Gladstone Investment shares are held by institutional investors. Comparatively, 23.4% of Capital Southwest shares are held by institutional investors. 2.7% of Gladstone Investment shares are held by company insiders. Comparatively, 4.8% of Capital Southwest shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
Capital Southwest beats Gladstone Investment on 14 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding CSWC and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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